When the Emperor Has No Clothes
Printer-friendly versionby Beatrice E. Wolper
Remember the fairy tale where the emperor was hoodwinked by some con artists saying his new fabulous suit was spun with gold thread so fine that only the smartest subjects could see it? Remember how the emperor commented on how beautiful the suit was because he wanted to appear intelligent? Remember that everyone around the emperor told him how great it looked because they didn't want to lose his favor? Remember how he walked completely naked among his subjects until a young child yelled, "But the emperor has no clothes on!" Unfortunately, family businesses sometimes resemble small kingdoms where the family members may be afraid to tell the founders the truth about a delicate subject for fear of being fired—or worse—cut out of the will! As the family business's legal advisor and counselor, the lawyer often will be in the position of telling the founder information he or she NEEDS to know, but may well not WANT to know. In fact, the attorney may be the only person objective or brave enough to tell the truth—such as, "Your son has a drug problem and may not be the proper choice for your successor," or, "The amount you believe is right for the valuation of your family business is way too high." When advising a client, the law charges a lawyer with informing the client about what the law says, helping with decisions about future conduct and relationships, and being truthful. Few attorneys enjoy being the bearer of bad news and few business owners enjoy discussing disagreeable matters. However, a business should depend on its attorney to be a counselor, a trusted adviser—the person who will always speak the truth—even if the information is unwanted or unpopular.
Beatrice E. Wolper is an attorney with the Columbus firm of Chester, Willcox & Saxbe LLP.
Ohio State Bar Association, Fine Print, Summer 2005